Key Info
FUND TYPE: 506(c)
*accredited investors only
Preferred Return: 8%
Target IRR: 17.8%
MIN. INVESTMENT: $100k
FUNDING DEADLINE: CLOSED
Introduction
Jefferson Crossings is a 90-unit Class B multifamily property in Kokomo, Indiana — a value-add opportunity built on operational excellence, not heavy renovation. The value is already in the asset. The play is going in and unlocking it.
Why Responsive Capital Ventures?
Stephen (Our Founder) says: "I didn't just vet RCV from a distance — I actually spent over a year on their executive leadership team. I saw how they operate from the inside: how they treat their investors, how they make decisions under pressure, and what they do when things get tight.
Here's what I can tell you from that experience: this team operates at the highest levels of competence and integrity. This is a team that has never missed a preferred return payment to their investors. Not once. And it's not because every deal went perfectly — it's because of who these people are. The parters will pay investors out of their own personal bank accounts before they let an investor go without their distribution. That's not a policy. That's character.
What I saw on the inside was a team that is deeply committed to the long-term prosperity of the people who trust them with their money. That's rare. And that's why when RCV brought this deal to me, saying yes was easy."
Overview
Jefferson Crossings is a 90-unit townhome and apartment community in Kokomo, IN, acquired through our operating partners at Responsive Capital Ventures (RCV). The strategy here is straightforward: take a stabilized, cash-flowing asset that's been undermanaged, bring in a world-class operations team, reduce expenses, push occupancy to where the market already supports it, and drive NOI significantly higher.
This is not a speculative bet on a distressed property. It's a proven execution play on a solid asset in a market with strong fundamentals.
Key Deal Details:
Asset Class: Class B Multifamily (Townhomes and Apartments)
Location: Kokomo, Indiana
Units: 90 (56 two-bed/1-bath townhomes, 6 two-bed/1-bath apartments, 28 three-bed/1.5-bath)
Purchase Price: $8,038,200
Total Equity Raise: $3,000,000
Projected Returns: 8% Preferred Return | 22.1% AAR | 17.8% IRR | 2.21x Equity Multiple
Hold Period: 7–10 years (refinance targeted in Year 3)
Minimum Investment: $100,000 (1% equity per subscription; 30 subscriptions available)
Distribution Schedule: Quarterly, beginning Q3 of Year 1 (no distributions in first two quarters as asset stabilizes)
Tax Advantages: Potential depreciation pass-through benefits. Note: these benefits are passive and typically cannot offset W-2 income. Consult your tax advisor.
Market Background
Kokomo is exactly the kind of market we look for: stable, workforce-driven, and undersupplied. With a metro population of 82,000, Kokomo's economy is anchored by major employers including Stellantis, GM, and Haynes International — the kind of blue-collar workforce that rents long-term and pays consistently.
Market-wide occupancy is sitting at 94.65%, and our subject property is already at 92% — nearly there. Limited new supply coming online means there's no significant competition on the horizon to threaten rent growth or occupancy. This is not a sexy, headline-grabbing market — and that's exactly the point. These are the markets where strong operators quietly win.
Projected Returns and Financials
The numbers here are driven by two levers that our operating partners at RCV execute well: driving revenue up and expenses down.
Current vs. Pro Forma Rents:
2 bed/1 bath Townhomes: $925 → $1,195/mo (29.1% increase)
3 bed/1.5 bath: $1,023 → $1,200/mo (17.2% increase)
2 bed/1 bath Apartments: $773 → $975/mo (26.1% increase)
Rent growth is being driven by professional management — not costly gut renovations.
Expense Reduction: Current expense ratio is 50.1%. RCV is targeting 34.6% through centralized operations — a model they've already proven across their portfolio.
Occupancy Upside: Current occupancy is ~92%. Budgeting for 95%, which represents $3,590/month in additional revenue on the table today.
RUBS Implementation: Installing Ratio Utility Billing System will shift ~$85K/year in water and sewer costs to tenants.
Targeted CapEx: ~$691K focused on HVAC (70% of units), interior unit renovations, water heaters, flooring, and common area upgrades — plus a 10% contingency buffer built in.
Projected Investor Returns (Base Case):
Preferred Return: 8% (cumulative, begins accruing at acquisition)
Average Annual Return: 22.1%
IRR: 17.8%
Equity Multiple: 2.21x
Refinance: Targeted in Year 3
Exit: Year 7–10 sale/disposition
These are projections based on current assumptions and market conditions. They are not guarantees of future performance. Please review the full PPM before making any investment decision.
Our Operating Partners:
Jefferson Crossings is being operated by Responsive Capital Ventures (RCV), a real estate private equity firm with a dedicated team of professionals focused on multifamily acquisition, operations, and investor returns.
https://www.responsivecapitalventures.com/
RCV's centralized operations model is one of the key reasons we chose to invest in this deal. Their team is currently leasing similar properties in the region at near 97% occupancy — which tells you everything you need to know about their execution capability. The vacancy problem at Jefferson Crossings is costing ownership $271K per year. RCV knows how to fix that.
Frequently Asked Questions (FAQ)
Q: What makes this different from other multifamily deals?
A: The value here isn't speculative — it's operational. The property is already 92% occupied, already generating income, and already in a market with 94.65% average occupancy. We're not banking on a turnaround. We're banking on a great team running a solid asset better than it's been run before. That's a much lower-risk profile than a heavy value-add in a secondary market.
Q: Why is the expense ratio so high right now?
A: The property is currently being managed inefficiently. The expense ratio sits at 50.1%, which is significantly above what a well-run operator should be achieving. RCV's centralized ops model targets 34.6% — and that gap is where a big chunk of the upside lives.
Q: When do distributions start?
A: Preferred returns begin accruing at acquisition. The first cash distributions are paid out in Q3 of Year 1 (no distributions in the first two quarters as the team stabilizes the asset). Any accrued preferred return from those first two quarters gets caught up on a rolling basis.
Q: Is the preferred return guaranteed?
A: No — and anyone who tells you a preferred return is guaranteed is not being straight with you. The preferred return is a hurdle the GPs must clear before they share in any profits. It prioritizes you as an LP. But if the deal doesn't perform, the preferred return doesn't get paid. That's why due diligence on the operators and the asset matters.
Q: What's the refinance strategy?
A: RCV has budgeted for a refinance in Year 3, though they're confident they can execute sooner depending on performance and market conditions. The goal is to pull out equity at stabilization, which may return a portion of investor capital while equity stakes remain in place.
Q: What are the tax benefits?
A: Investors may benefit from depreciation pass-through on their proportional ownership stake. However, these are considered passive losses and generally cannot offset W-2 income. Consult your CPA or tax advisor for specifics on your situation.
Q: Can I invest with IRA funds?
A: Potentially, yes — but there may be UBIT (Unrelated Business Income Tax) implications. We recommend talking to a qualified tax advisor before doing so.
Q: How often will I receive updates?
A: RCV provides quarterly reporting with detailed asset performance, financial updates, and operational highlights.
This is a 506(c) offering available to Accredited Investors only. This page is for informational purposes and does not constitute a securities offering or general solicitation. All projected returns are based on assumptions and market trends that may change over time. They should be considered estimates, not guarantees. Please review and execute the PPM and all related offering documents before investing. Mission Capital Funds, LLC and Responsive Capital Ventures do not provide tax, legal, or investment advice.
© Mission Capital Funds, LLC